Show Notes
How did China grow its EV industry? Hint: it wasn’t really central planning from Beijing. It was a magical concoction of entrepreneurs and local officials using their guanxi to dance around giant SOEs and central-government regulation, leverage private and foreign capital, and just be really excellent business people. That’s led to our situation in 2026 — world-beating companies that have a ton of overcapacity and are set to take over the planet.
To discuss, we have ANU Professor Fengming Lu, who recently wrote a fantastic paper in The China Journal, titled The Rise of China’s Electric Vehicle Industry: Strategic Alliances Between Local Governments and Private Capital, alongside Irene Zhang, contributor and analyst at China Talk. We also get into the lessons this story holds for other strategic industries like robotics and AI — plus a little detour into the Chinese podcasting ecosystem.
Our conversation covers:
China’s automotive transformation from 130 small carmakers in the 1990s to the world’s most competitive EV industry.
The rise of Chery, Geely, and other Chinese auto champions — how local connections, foreign technology, and creative financing helped them break into an industry dominated by state-owned enterprises.
The downside of success — how China’s EV boom created an overcapacity problem.
The role of guanxi and elite politics in deciding who gets to build cars.
When Chinese EVs go global — record exports, overseas factories, trade tensions, and whether the same local-government playbook will shape the next wave of industries, from robotics to AI.
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